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Thepotemich [5.8K]
3 years ago
7

Tiffany, who is married to Saul, takes out a $1,000,000 life insurance policy on Saul's life in 2008. Two years later they get d

ivorced and Tiffany immediately remarries. Saul is not required to pay any alimony or child support to Tiffany after the divorce. In 2015, Saul dies. What will Tiffany collect on the life insurance policy, assuming she continued to pay all premiums due following their divorce?
a. $0, because Tiffany has no insurable interest.
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
c. $1,000,000, because Tiffany had insurable interest in Saul's life at the time of his death.d. $0, because Saul was not ordered to pay alimony to Tiffany.
Business
1 answer:
NemiM [27]3 years ago
7 0

Answer:

b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.

Explanation:

The correct answer is - b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.

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Answer:

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Explanation:

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                                                                        A                    B           Increment

Purchase(assumed)                                          100              150                   50  

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Return                                                                 14                25.5               11.5      

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In part B:  

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Purchase(assumed)                                          100              120                   20  

Departure Rate                                                  14%              17%                

Return                                                                 14                20.4               6.4      

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